The Normal Distribution：μ;indicated as X ~ Nμ:Approximately 99% fall in μ ± 2.58σ.[PracticemeanNZ corresponding to 8% must equal 50%. So P8% ≤ Portfolio return ≤ 11% = 0.5832 – 0.50 = 0.0832 or approximately 8.3 percent.

The Total Probability Rule：not-S,the two-quarter period in total.rulejoint probability of both A and B occurring is PAB = PAPB.

The Lognormal Distribution：lnY:[PracticeBcannot have negative values.

The Binomial Distribution：p,of success is constant for:[Practice:[Practicethree.

Probability Stated as Odds：Odds against E = [1 − PE]PE,if:successful;calculate the bet’s anticipated profit as follows:Win,Lossprobability of 0.167 for beating sales is odds of 1 to 5.

Trading Blocs, Common Markets, and Economic Unions：all barriers to the flow of goods and services among members have been eliminated. However:Beneluxreplacement of higher-cost domestic production by lower-cost imports from othermembers.

Continuous Random Variables：equal to any fixed point under a continuous uniform distribution is zero.

Frequency Distributions：frequency,2.35:[Practicecorrect–1.0 to +2.0intervalC.+5.0 to +8.0

Applications of the Normal Distribution：horizon.,safety-first ratioSFRatio=[ERP–RL]σP?[Practice:ABCAllocation C = 8.5 – 4.5 14.34 = 0.279

Probability：Probability:Random:variable:Objective,Subjective:probability draws on personal or subjective judgment.;Given a probability PE:Loss

Continuous Random Variables：B.;C.,Approximately 99% fall in μ ± 2.58σ.[PracticeB.C.mean

Frequency Distributions：frequency,interval.,[Practicecorrectinterval+5.0 to +8.0x-axis and the absolute frequency for that interval on the y-axis